Converge tests lower-cost prepaid fiber offer

Converge ICT Solutions Inc. is preparing to pilot a new low-cost prepaid home broadband offering this quarter, as the telco seeks to reach price-sensitive households amid the increasingly saturated fiber market.

Dennis Anthony Uy, cofounder and CEO of Converge, said the product, which could be commercially launched as early as the first quarter of 2027, is aimed at millions of Filipino households that remain unconnected to fixed broadband services and largely rely on mobile data.

Only about half, or 13.56 million,  of Philippine households had internet access at home, according to a Philippine Statistics Authority’s 2024 survey. A separate Opensignal assessment found that just 29 percent of households had fiber broadband connections.

Uy said reaching the remaining market would require offering home internet at prices competitive with prepaid mobile data, particularly for consumers who cannot afford conventional monthly broadband subscriptions.

“Our consumers are really in a sachet market,” Uy told reporters at a chance interview last week. “They want to do it prepaid style.”

“[That is why] we’re thinking of creating a new product for the mass market. I want to target the poorest of the poor,” he added.

Uy said the company was already in the research and development stage, with pilot testing planned for the fourth quarter, particularly in third- and fourth-class towns in Mindanao.

The Converge chief said the technology would involve bringing fiber infrastructure “to the edge,” closer to residential areas, to make home broadband connections easier and cheaper to deploy.

While other telecommunications providers are already using similar technology, particularly for mobile services, Uy said Converge intends to adapt it for home broadband.

Converge already offers prepaid fiber broadband for as low as P700 a month, with speeds of up to 50 megabits per second. However, Uy said the new product could bring the monthly cost down to around P500.

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“We need to bring low cost to be able to target this market. It can’t be beyond P500,” he added.

Uy said the company could limit infrastructure spending by extending its existing network.

To keep upfront costs manageable, Converge is also considering allowing customers to use the necessary equipment through a refundable deposit, provided the device is returned when the service is discontinued.

Despite its lower price point, Uy believes the offering could become a significant growth driver for Converge, given the large number of households that remain outside the fixed broadband market.

Converge had 3.09 million subscribers as of end-June. Its fiber network spanned 960,000 kilometers as of May.